Non-state actors call for replenishment of IDA fund as Summit kicks off in Nairobi
National
By
Sharon Wanga
| Apr 28, 2024
The International Development Association (IDA)21 for the ="https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.standardmedia.co.ke/business/business/article/2001494033/ruto-to-push-for-global-financial-system-reform-as-presidents-meet&ved=2ahUKEwj74NSVu-WFAxVkSKQEHUBVC0IQxfQBKAB6BAgPEAE&usg=AOvVaw1c0ntKeMS3FOIN1XlQJKyp">Africa Heads of State Summit< kicks off in Nairobi on Monday, April 29.
As the shareholders and partners of the ="https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.standardmedia.co.ke/business/business/article/2001485739/world-bank-to-give-kenya-over-sh18tr-in-loans-and-investment&ved=2ahUKEwi-o6zMu-WFAxXf6wIHHRtCBYUQxfQBKAB6BAgNEAE&usg=AOvVaw2bJGhnfNRC96r2IJqRwMNX">World Bank< meet every three years to replenish IDA funds and review policies, the government of Kenya has hosted a pre-meeting ahead of the end-year event.
IDA is an arm of the World Bank that provides grants and highly concessional financing on extremely low-interest credits that can be repaid over long periods to underdeveloped countries.
The funds help the countries build resilience and adapt to the impacts of ="https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.standardmedia.co.ke/article/2001494045/climate-justice-and-conservation-are-undeniably-interconnected%3Futm_cmp_rs%3Damp-next-page&ved=2ahUKEwjs76vku-WFAxXv8AIHHbLwDLIQxfQBKAB6BAgHEAE&usg=AOvVaw2jYI3JKvwLGdLNKsjhs1Mt">climate change< as well as invest in development priorities.
As over ten African Heads of State are expected in the country, ONE in Africa and 14 other civil society organisations have called on the leaders to make a demand for an ambitious replenishment of the World Bank’s IDA fund.
Serah Makka, ONE in Africa Executive Director, said that African countries can use the summit as an opportunity to know whether the IDA fund is utilised well in their country.
“IDA is crucial now given the fiscal constraints many countries are experiencing after back-to-back economic shocks. The design of IDA, a demand-driven, country-directed instrument, can potentially mitigate short-term needs and long-term stability,” said Makka.
One of the risks that Africa might face as over 60 countries are set to go into elections this year is the domestic pressure on shareholder governments to spend on ="https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.standardmedia.co.ke/business/business/article/2001493418/kenya-to-miss-growth-target-on-budget-gaps-and-revenue-leaks&ved=2ahUKEwjjuvz7u-WFAxX_xQIHHeeOA-gQxfQBKAB6BAgREAE&usg=AOvVaw2s5gEdwOig4ztjnZLwkLfD">national budgets<.
The non-state actors have made an explicit call for an extra IDA21 replenishment commitment of at least $100 billion that is substantial enough to put IDA on track to triple its financing basket to $279 billion by 2030.
In their memorandum, they have further recommended a clear outline of a set of policy priorities and reforms for IDA citing the commitment to increase citizen participation in deploying more transparent funds within African countries.
The last six decades of IDA financing have enabled considerable investments in the social sectors, particularly in education, health, and social protection.
The nonstate actors now want the World Bank and its major shareholders to prioritize food and nutrition, smallholder agriculture, and food systems transformation at the heart of IDA21.
They have further suggested capitalization on AU membership in the G20 to put IDA on the agenda of all G20 convenings and to champion calls for fairer governance structures within Multilateral Development Banks that reflect Africa’s growing importance.
Additionally, they urge the association to work across borders and take advantage of the Africa Continental Free Trade Area